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The Top Nine Secrets for Product Sourcing – Details You Need to Know

Anyone wanting to start in the e-commerce industry is going to ask the same question – What is a good product to start selling?

There is much that goes into this – market, competition, location, and the like.  Finding the best products to sell takes time and effort.

This means if you are not 100 percent on the product you want to sell, then you need to keep reading.  We are going to cover the details on the best way to find appropriate products for you and your business.

Product Sourcing – Definition

Product sourcing is when you find a supplier in your target market that you can buy your products and sell to your customers.  It is a goal to have products with a significant product margin as this will ensure your business growth.

This sounds easy on paper.  However, there is much more to it than people may recognize.  You need to figure the strategies necessary to source the products you want to sell to your customers.

If you are new to this process, this blog will provide you with the tips you need.

The Top Nine Product Sourcing Tips

It is important to realize these tips are tried and true.  Each one of them is based on experience within the industry.

Market Research

You may find a product with a nice profit margin, but is it a product people are interested in buying?  Conversely, you may find a product with a lower margin but lots of sales.

Look before you leap.  Just because a product is hot for the moment does not mean it will be this way in a few months.

For example, sunscreens, beach towels, and the like are incredibly great selling products starting around the middle of May, but these drop sharply towards the end of August.

Market Trends

What is selling?  What fits with your customer’s lifestyle?  These are necessary questions for business survival.

Markets vary and change.  You need to plan accordingly based on this information.  Keeping too much inventory on hand may become outdated, and you are stuck with unsold products.

This is especially important in a field like fashion.  Fashion is possibly the most fickle of all markets and businesses.  Managing inventory while ordering new products is a very difficult balancing act.

The Supplier’s Capacity

Make sure your supplier can keep up with your demands.  Products dependent on a certain season, for example, will certainly change when seasons change.

You need to make sure your supplier has the infrastructure and machinery.  This means access to raw materials, labor, and shipping.  If the supplier is missing one of these elements, your business will suffer.

Check Sources

You need to be sure the sources you use are valid and trustworthy.  Your goal is a professional business relationship.  This will gain you countless benefits over time, including discounts on your order and shipping fees.

Check the Competition

 New to a market?  Step back, and look.  You want to see what your competition is doing and how.  Order a product, and check the package.  This will give you a great deal of information.

You can also see what the competition’s customer base has to say.  Learn what the customer likes about the product and more importantly, what the customer does not like about the product.

Now you can design a product under your own brand that will have more of what the customer wants and less of what they do not like.

Dropshipping

Dropshipping means you do not have stock on hand or worry about shipping.  The supplier sends the products to your customer directly, and you receive a cut of the overall sale.

Dropshipping has its own advantages and disadvantages.  Do your research before starting a dropshipping company. DSers offers the ultimate guides and solutions to help start and grow dropshipping businesses.

Bulk Buy

This is a great way to get great profit margins.  Suppliers will often cut deals for buyers who buy in bulk and with regularity.  This means you need a product that sells well and quickly or seasonal items – think about what we said about summertime products – this is a shining example of products that sell well, quickly, and are seasonal.

Look More Than Once

Your products may be doing well now, but this does not mean you should be complacent.  The market fluctuates.  This means you need to stay on top of your products and suppliers at all times.

Have a Backup Plan

A Plan B means you are ready in case something happens to your business or your supplier.  It is important to always be a step ahead of your customers and competition.

Final Thoughts

There is always going to be competition.  No matter what you are selling, there is another person or business looking to sell or sell your products.

Additionally, businesses come and go like the passing of the day.  You will need to be willing to ride the waves of business.  The more time you invest into your business, the better your chances of success.

The basics of your business begin with the product sourcing process, and Souring Nova is always ready to help you with this all-important step.

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